Prime IT Penny Shares: Traders of enormous IT shares obtained burnt lately because of the world slowdown. Newly listed tech corporations like Paytm and Nykaa gave severe blows too, reaching decrease lows each different day. Some buyers got here down a step for mid-cap IT shares. A couple of, even thought-about penny IT shares eying multi-bagger features to offset latest losses.
On this article, we discuss in regards to the prime IT penny shares in India that risk-taking buyers can add to their watchlists.
We’ll ultimately get across the a lot sought ‘prime IT penny shares’ checklist. However earlier than that, for starters, tell us what’s a penny inventory.
What’s a penny inventory?
A penny inventory is the inventory of a small-cap firm, normally having a market worth of lower than Rs 500 crore. Moreover, it’s mentioned that penny shares have low share costs, beneath Rs 85 or so. The scrip can commerce for as little as Rs 1 or 50 paise a bit.
They’ve comparatively lesser liquidity and might include added restrictions of supply solely, no margin buying and selling, and extra.
Danger-taking buyers are at all times looking out for penny shares within the hope of bagging multi-bagger features. Nevertheless, penny shares usually go bust as usually as they go up. Traders should train excessive warning whereas investing in penny shares.
Checklist of Prime IT Penny Shares in India
So with out additional ado, allow us to shortly bounce to know in regards to the prime IT penny shares on BSE and NSE.
Prime IT Penny Shares #1 – Cambridge Expertise Enterprises
Cambridge Expertise Enterprises is over 2-decade previous expertise and outsourcing group that gives providers to midsize corporations. It’s primarily based out of Hyderabad, India with a advertising and marketing and help presence within the US.
It provides a broad vary of IT providers together with SaaS utility improvement, huge knowledge & analytics, AI / ML improvement, cloud transformation & administration, IoT & mobility, and DevOps & infrastructure administration.
The corporate caters to shoppers in industries similar to BFSI, manufacturing, telecommunication, leisure, logistics, healthcare, speedy prototyping, power, retail, and extra.
Its revenues have remained upwards of Rs 100 crore within the final three years. For the monetary yr ended 2022, it reported a internet revenue of Rs 12 crore, up 33.33% from Rs 9 crore a yr earlier than that.
The inventory presently trades at a profitable P/E of 9.16 and worth to e-book worth ratio of just one.20. The corporate has a low debt-to-equity ratio of 0.45. As for the inventory returns, the shares of Cambridge Expertise Enterprises have appreciated at a CAGR of 37.75% during the last three years.
Prime IT Penny Shares #2 – Intense Applied sciences
Powered by over 500 expert workforces, Intense Applied sciences is a world enterprise software program services firm. It’s headquartered in India with a powerful and rising presence within the USA, Latin America, Europe, the Center East, Africa, and the Asia-Pacific area.
Its vary of options facilities round digital buyer engagement. Its merchandise allow enterprises to supply constant and customized buyer communication and implement digital transformation.
Its UniServe™ NXT platform comes with AI, utility improvement, course of automation, cloud, and extra such capabilities. Its suite assists Fortune 500 corporations with buyer onboarding, buyer engagement hub, B2B buyer expertise, and extra such actions.
The shares of the expertise have compounded at an annual price of 39.01% within the earlier three years. Intense Applied sciences provides a excessive RoCE of 28.3% and a likewise excessive RoE of twenty-two.2%. It has no debt and at the moment trades at a lovely P/E ratio of 8.29. Nevertheless, the inventory has a low promoter shareholding of 18.1% solely.
Prime IT Penny Shares #3 – Airan
Airan traces its origins again to the Nineteen Nineties when Sandeep Agrawal, the promoter of the corporate began laptop teaching lessons. Sensing an enormous alternative forward, the corporate slowly ventured into processing IPO purposes for public sector banks in 1995.
Through the years, Airan diversified in the direction of MICR clearing, money administration, and IT & IT-enabled providers ultimately. As of the current date, Airan has a powerful presence in data expertise (IT) and Info Expertise enabled providers (ITES).
It provides banking transaction processing providers and doc administration providers for telecommunication corporations, web providers suppliers, cost banks, and extra such enterprises.
The revenues of the IT penny inventory have grown at a CAGR of 14.47% yearly from Rs 58 crore in FY20 to Rs 87 crore in FY22. It clocked a internet revenue of Rs 10 crore in FY22.
It has a excessive promoter shareholding of 72.4% and presently trades at a barely excessive P/E ratio of twenty-two.6.
Prime IT Penny Shares #4 – XT World Infotech
XT World Infotech is a longtime IT, BPO and expertise consulting providers supplier with 23 years of historical past. It was established in 1998 and has emerged as of of the main corporations in these sub-segments everywhere in the world.
It has greater than 600 workers unfold throughout its places of work within the USA and India. The corporate supplies Oracle enterprise options, automation options, software program providers, AP automation expertise, and BPO providers.
Its clientele checklist has high-profile names similar to Verizon, Oracle Consulting, Axis Securities, Marriott Bonvoy, and extra.
XT World reported a internet revenue of Rs 20 crore on revenues of Rs 217 crore in FY22. It has a promoter holding of 62.8%.
The inventory presently trades at a P/E ratio of 20.4 giving a market worth of Rs 422 crore to the IT firm.
Prime IT Penny Shares #5 – Vedavaag Techniques
Based in 1998 as an e-governance firm, Vedavaag Techniques is a small IT firm that operates within the area of interest phase of citizen providers supply administration. Its choices embrace monetary inclusion, e-governance options, cloud-enabled IoT-based AI & ML options, retail & logistics and on-line training providers throughout India.
Vedavaag has a presence in over 18 states within the nation and has partnered with varied companies and PSUs like SBI, BSNL, and extra to offer rural citizen providers.
The corporate can be creating area of interest AI and ML merchandise for essential sectors similar to healthcare, training, security, and safety.
Its revenues have persistently grown from Rs 76.20 crore in FY20 to Rs 94.81 crore in FY22. Throughout the identical interval, its internet revenue scaled from Rs 6.25 crore to Rs 8.30 crore.
The IT providers penny inventory has virtually nil debt with a debt-to-equity ratio of 0.03. It trades at a P/E of 14.3 and a lovely price-to-book worth of 0.98. Nevertheless, on a cautionary observe, the promoter holding is on the decrease finish of the spectrum at 36.2%.
Checklist of Prime IT Penny Shares
We learn bout 5 prime IT penny shares intimately above. The checklist beneath highlights extra such penny shares.
Firm NameMarket Cap (Rs Cr)CMP (Rs)
IZMO10882.5
Cambridge Expertise Enterprises11759.5
Vedavaag Systems12052.2
Intense Technologies16272.4
Compucom Software17221.8
Airan22518.0
Megasoft25534.6
Virinchi35542.5
XT World Infotech42932.2
Kellton Tech Solutions56558.5
A brief part beneath highlights the analysis methodology used for this text.
Analysis Methodology
To put in writing this text, we used the inventory screener of the Commerce Brains Portal. The analysis has been restricted to training, {hardware} and software program; the three sub-sectors of the broad IT trade.
As for the market capitalization and present share worth, we saved the higher restrict of Rs 500 crore and Rs 85 respectively. Along with this, the debt-to-equity ratio was saved beneath 1 to keep away from any overly-leveraged shares.
Lastly, the price-to-earnings ratio vary was saved between 1 and 50. This helped to filter out reasonably worthwhile corporations.
All these parameters left some 25 shares. For these 25, now we have exercised subjective judgment for income and internet revenue development. Consistency of figures and the quantity of accessible data had been additionally thought-about for choosing prime IT penny shares.
The picture beneath exhibits a bit of the Commerce Brains Inventory Screener
In Conclusion
We at the moment are on the finish of our article on prime IT penny shares in India. Whereas penny shares may be rags-to-riches tales, they will additionally take away no matter is left. Subsequently, buyers should think about a wide range of components similar to their monetary place, allocation, and extra earlier than placing cash right into a penny inventory.
How has been your journey with multi-bagger penny shares? Have you ever ever discovered one? How about you tell us within the feedback beneath?
Now you can get the most recent updates within the inventory market on Commerce Brains Information and you may as well use our Commerce Brains Screener to search out the very best shares.
Vikalp Mishra is a commerce graduate from the College of Delhi. He likes to put in writing on finance, cash and enterprise. He’s a voracious reader with a real curiosity in investing. Drop him a mail at [email protected].
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